“Customers want
what’s best for their families: Energy that is affordable, reliable and
sustainable. NIPSCO’s new plan puts them front and center,” NIPSCO President
Violet Sistovaris said. “We have the opportunity to invest in balanced
options that will deliver more cost-effective and cleaner energy for our
customers. The ‘Your Energy, Your Future’ initiative envisions a brighter
future that delivers the energy our customers need while reducing emissions
and focusing on the long-term strength of our local economy.”

Meanwhile, NIPSCO
has also submitted to the Indiana Utility Regulatory Commission (IURC) a
request to increase its existing electric rates to support changes in
electric generation and service to customers. “Over the long term, the
changes NIPSCO is making will equate to more than $4 billion in cost savings
for customers,” the company said. “Becoming coal-free will also improve the
region’s environment, reducing carbon emissions by more than 90 percent by
2028.”

Under the “Your
Energy, Your Future” initiative, the company would accelerate the
anticipated retirement of NIPSCO’s five remaining coal-fired units and its
transition to cleaner, more cost-efficient renewable energy. Under the plan,
the company will retire Units 14, 15, 17 and 18 at the R.M. Schahfer
Generating Station in Wheatfield no later than 2023 and Unit 12 at the
Michigan City Generating station in Michigan City by 2028.

Operation of
NIPSCO’s existing natural gas-fired Sugar Creek Generating Station in West
Terre Haute, Ind. and the Norway and Oakdale hydroelectric dams along the
Tippecanoe River will continue.

“While still too
early to announce workforce changes, the company plans to coordinate with
internal and outside regional and statewide partners to reduce the impact of
the transition over the next five to 10 years,” NIPSCO said.

To replace the
coal-fired plants, NIPSCO anticipates pursuing largely renewable energy
resources--such as solar and wind energy--combined with battery storage
technology. The timeline for retirement is faster than indicated in NIPSCO’s
last IRP, as the energy market has since produced more competitive and
cost-effective options for NIPSCO customers.

Electric Rate Hike
Sought

“Though customers
will realize savings over the long term--largely through lower fuel costs
from increased use of renewable energy and the avoidance of costs associated
with maintaining and upgrading aging facilities--NIPSCO’s separate request
to adjust electric rates proposes an increase for customers to support the
transition,” the company said.

“We know that every
dollar matters to our customers, so we want to be upfront about shorter-term
shifts some of our customers will see in their bills during this
transition,” Sistovaris said. “This proposal allows us to provide the level
of service our customers expect, it addresses changes in the way major
industrial customers will acquire electricity and it proposes new assistance
programs for income-eligible customers.”

NIPSCO’s proposal
must be reviewed and approved by the IURC, and the nearly yearlong process
includes direct input from customers and the public. Under NIPSCO’s request,
newly proposed electric rates would be phased in over two steps in September
2019 and March 2020. Average residential customers would see an $11 per
month increase--or 12 percent--in their electric bill. Included is a
proposal to increase the existing, fixed monthly customer charge by $3 per
month.

NIPSCO’s request
represents an increase in annual revenue of $21 million. “The primary
drivers of the proposed increase include investments in upgrading electric
infrastructure, environmental upgrades and a shift in the way some large
industrial customers will obtain electricity in the future,” the company
said.

“Meanwhile,
NIPSCO’s electric rates remain below the national average, and the company
remains focused on improving service through investments to minimize
outages, provide better overall response and information to customers when
outages occur and help customers save energy and money,” the company added.